Miners soften stance with new PM

The mining industry has softened its stance against the federal government following a call by new Prime Minister Julia Gillard for good faith negotiations over the proposed super profits tax.

Ms Gillard has asked the mining industry to abandon its campaign against the resources super profits tax as she canned taxpayer-funded government advertising promoting the measure.

“Today I will ensure that the mining advertisements paid for by the government are cancelled," she told reporters.

“In return, I ask the mining industry to cease their advertising campaign as a show of good faith and mutual respect."

Mining giant BHP Billiton was the first to come to the party by announcing it would cease its ad campaign.

The Minerals Council of Australia, which promised to wage war against the Rudd government over the tax, also shelved its ads.

Rio Tinto
is expected to soon follow BHP Billiton and suspend its advertising campaign against the resource super profits tax. Rio is understood to have decided it will suspend its advertising campaign on Thursday.

Labor in May approved a $38 million advertising blitz to spruik its proposed 40 per cent tax on mining super profits.

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It followed the mining industry’s own rollout of ads calling for the proposed tax not to proceed.

Ms Gillard said consensus needed to be sought on the tax.

“To reach a consensus we need to do more than consult, we need to negotiate," she said.

“We must end this uncertainty, which is not good for this nation."

Ms Gillard said the government’s door was open, and asked the industry to “throw open its mind".

Asked if there would be a change to the proposed 40 per cent tax rate, Ms Gillard said: “I’m not going to canvass (that) through framework questions here.

“I’m indicating a very clear predisposition to the mining industry about the best way forward," she said.

Treasurer Wayne Swan and Resources Minister Martin Ferguson will lead negotiations with the mining industry.

Mining magnate Andrew Forrest, one of the most vocal opponents of the tax, congratulated Ms Gillard on her election, saying her appointment was a reflection of community concern about the tax.

The billionaire said he appreciated Ms Gillard’s offer to open government doors on negotiations with the mining industry.

“As we had previously declared, the initial structure of the proposed RSPT is dead and buried."

Minerals Council chief executive Mitch Hooke said the industry was looking forward to working with Ms Gillard.

The council board, meeting in Melbourne on Thursday, agreed to accept the prime minister’s invitation to consult.

“As a gesture of goodwill, the board determined to suspend its advertising in expectation of meaningful and constructive consultations," Mr Hooke said.

The council is keen to discuss key issues of the tax including retrospectivity, the tax rate, sovereign risk and international competitiveness.

The Queensland Resources Council has suspended its advertising campaign with spokesman Michael Roche welcoming Ms Gillard’s offer of meaningful discussions over the tax.

“The landscape appears to be changing, hopefully for the better," Mr Roche said.

“We are taking heart from the prime minister’s comments that she’s ruling nothing in and nothing out, and from that starting point, real consultation can begin."

The West Australian Chamber of Minerals and Energy is considering taking down billboards it erected in Perth on Wednesday that carry messages opposing the tax.

“I’d expect they would come down in the next day or two," a chamber spokesman told AAP, adding it would seek confirmation from the government that all parameters of the proposed tax were subject to negotiation.

A planned rollout of posters, radio and newspaper advertisements has been suspended.